Small-Cap Stocks

Small-Cap Stocks

Small-Cap Stocks

Stocks are categorized on the basis of their market capitalization. The market capitalization of a company is a product of its share price and the outstanding number of shares. Small-Cap is a term used to refer to companies that have a relatively smaller market capitalization. Small-cap are those set of companies whose market capitalization is less than 5000 Cr. They are small-sized emerging companies that may like to grow into mid-cap or large-cap. Stock issued by these companies are known as small-cap stocks and they hold a rank above 251. (more…)

Synthetic Cash

Synthetic Cash

Synthetic Cash

An instrument that is tailored to mimic other financial instruments used in investment options is called Synthetic Cash. Customization can be done to suit the requirements and purpose for use of large investors. It allows investors to choose from investment options without investing capital to acquire or sell an asset. (more…)
Chooser Option

Chooser Option

Chooser Option

An option contract that allows the holder to decide the nature of the option i.e., whether the option is a call or put before the expiry date is called a Chooser Option. It is an option contract where the holder may choose at some point during the life of the option whether the option is a call or a put. These options have the same strike price and expiry date regardless of it being a call or a put. (more…)
reference data in trading

Reference Data in Trading

Reference Data in Trading

Trading, here, refers to the transfer of a stock or security from the seller to the buyer. There is a number of risks involved in trading such as Liquidity Risk, Market Risk, Credit Risk, Interest rate risk, and so on. Along with all the risks mentioned, consideration of Operational Risk is also of so much importance. Operational risk refers to uncertainties and hazards faced in performing day-to-day or routine activities. --- Change it  (more…)
Stop – Loss Order

Stop – Loss Order

Stop – Loss Order

There are three common types of orders. A market order, limit order, and stop-loss order. Market order – Market order is an order to buy or sell a security immediately. This order will not guarantee the execution price but will definitely guarantee the time of execution. It will generally execute at or near the ask or bid price. Limit order – Buying or selling a security at a specific price or better is known as a limit order. Buy limit order and sell limit orders will only be executed at the limit price or higher and limit price or lower respectively. Stop-loss order – It means an order to buy or sell a stock once the price of the stock reaches the specified price, known as the stop price. A stop order becomes a market order when the stop price is reached. (more…)
Synthetic Options

Synthetic Options

Synthetic Options

Options offer a very low-cost method to invest in with less capital, whether in currencies, trading futures, want to buy shares of a corporation. Options are the most common way to make profits from market swings. Synthetic options generally minimize problems as compared to vanilla options because generally synthetic options are less affected by problems of options. Volatility, decay, and strike price play a less important role in its ultimate outcome. (more…)
Falling Knife

Falling Knife

Falling Knife

Sharp drops in stocks seen during a week’s time are referred to as a ‘Falling knife”. It is a term used to describe a quick drop in the price of a security, such as a stock. It does not have a specific magnitude or duration to drop before a falling knife constitutes. (more…)
Efficient Frontier

Efficient Frontier

Efficient Frontier

Efficient frontier or Portfolio frontier, a part of modern portfolio theory comprises efficient parts of the risk-return spectrum. It occupies investment portfolios that offer the highest expected return for a specific risk level. It is a set of optimal portfolios that are expected to give higher returns for a minimum level of return. (more…)
Stop-Limit Order

Stop-Limit Order

Stop-Limit Order

A Stop-Limit Order is of two types of order which consist of one is ‘Stop Order’ which is activated or trigger price and the Other one is ‘Limit Order ’which is helpful to execute the trade. It is used by the traders to manage the Risk.  It helps to ensure that you will get a specific price where you will be placed an order but there is a drawback that it doesn’t give a guarantee to execute the trade. (more…)
Put Option

Put Option

PUT OPTION

When an investor the right, but not the obligation, to buy or sell a stock at an agreed-upon price and date, it is known as a stock option. There are two types of options: the put option which is a bet that a stock will fall, or the call option which is a bet that the price of a stock will rise. Put Options Option contracts known as put options are used when a stock or bond owner has the right, but not the duty, to sell or sell short a specific quantity of the underlying assets at or below a predetermined price within a predetermined time period. The striking price is the predetermined price at which the buyer of this option will be able to sell the shares if the option is exercised. (more…)